ERP Software

MRP Versus ERP Software Solutions

MRP (Manufacturing Requirements Planning or Materials Resource Planning) software solutions and ERP (Enterprise Resource Planning) software solutions are meant to improve sales, save money on cost of labor, improve customer satisfaction and make a manufacturing organization more profitable overall.   Manufacturing Requirements Planning software solutions enable manufacturing operations to grow.  Enterprise Resource Planning software solutions enable not only manufacturing to grow, but improved financial control, human resources functionality, and so on.  An ERP software solution manages all facets of a manufacturing organization whereas an MRP software solution manages the manufacturing facet only.  Both an ERP software solution and an MRP software solution provide an infrastructure for a manufacturing operation.  However, an Enterprise Resource Planning software solution provides an infrastructure for all other company dealings as well.  Having a well defined infrastructure facilitates and streamlines processes making organizations more efficient.

An MRP software solution tracks manufacturing activities, tracks material requirements, helps to better manage inventory, keeps track of production capacity, and tracks all stages throughout the production cycle.  Because an MRP software solution is performing all these tasks, it’s typical for manufacturing organizations to see improved cycle times, improved production operations, improved inventory management, and improved more accurate forecasting.

An ERP software solution benefits the entire organization and not just manufacturing.  An Enterprise Resource Planning software solution essentially contains MRP functionality and much much more.  Think of a candy bar.  If you take one bite of that candy bar it will be awfully satisfying.  However, if you eat the entire candy bar, you’ll be entirely satisfied.  The bite represents an MRP software solution and the entire candy bar represents an ERP software solution.  However, taking one bite (implementing an MRP software solution versus an ERP software solution) is sometimes the better choice.  Some manufacturing organizations don’t need the entire candy bar (the ERP software solution) and will never use the functionality provided by the ERP software solution.  Why waste functionality and spend extra money on a solution that will not work for your manufacturing operation.  To decide which solution will be best for your organization, you must evaluate your organizational needs.  Identify your gaps and which processes need to be improved to make your organization more profitable.  Keep in mind that an ERP software solution will cost significantly more money when compared to an MRP solution.  However, your business may experience a quick return on investment with an ERP software solution.

Written by :

kristine H